Mumbai (Maharashtra) [India] – The Indian stock markets experienced renewed selling pressure on Wednesday, reversing initial gains as concerns over earnings and economic outlook weighed on investor sentiment.
The Nifty 50 index opened at 23,746.65 points, gaining 38.75 points (0.16%), while the BSE Sensex opened at 78,319.56 points, up 120.45 points (0.15%). However, both indices declined shortly after the opening session, reflecting bearish undertones.
Market Sentiment Remains Cautious
Experts attribute the downturn to a combination of factors, including lowered GDP growth estimates and continued Foreign Portfolio Investor (FPI) outflows in key sectors like financials.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets are struggling with lowered GDP growth estimates of 6.4% in FY2025 versus 8.2% in FY2024. With major financial institutions providing moderate operating updates for the October-December quarter, markets are seeing continued FPI selling in key sectors like financials. Overall, the mood stays cautious, and stock markets will depend on individual corporate earnings and the Union Budget to lift sentiment.”
Sectoral Performance
At the opening bell, most sectoral indices faced selling pressure, except for Nifty Pharma and Nifty Oil and Gas, which recorded gains. Out of the Nifty 50 stocks, 13 advanced, 37 declined, and one remained unchanged at the time of reporting.
Top Gainers:
- Dr. Reddy’s Laboratories
- ONGC
- Reliance Industries
- Cipla
- Maruti Suzuki
Top Losers:
- Trent
- Shriram Finance
- Adani Ports
- BEL
- Tech Mahindra
Akshay Chinchalkar, Head of Research at Axis Securities, commented, “The Nifty’s rally in the previous session helped trace a so-called ‘bullish harami’ pattern, but the long upper shadow indicates nervousness persists. Bulls need to push the market above yesterday’s high of 23,795 to validate the formation. Resistance is forming between 23,915 and 24,100, where the 24,000-call strike for weekly expiration is concentrated.”
Global Market Trends
Asian markets presented a mixed picture during Wednesday’s opening session.
- Gainers:
- South Korea’s KOSPI index rallied over 1.2%.
- Singapore’s Straits Times index surged by 0.5%.
- Decliners:
- Hong Kong’s Hang Seng index fell by 1.3%.
- China’s Shanghai Composite dropped by over 1%.
- Japan’s Nikkei 225 was down by 0.35%.
With the Union Budget and corporate earnings on the horizon, market participants remain hopeful for a turnaround while navigating the challenging economic landscape.